Terraform-Associate-003 Practice Exam Questions with Answers HashiCorp Certified: Terraform Associate (003) (HCTA0-003) Certification

terraform graphgeneratesGraphviz DOT formatoutput, which allows visualization ofresource dependenciesin Terraform.

A (terraform refresh)– Incorrect, as it only updates the state file.

C (terraform output)– Incorrect, as it only displays Terraform output values.

D (terraform show)– Incorrect, as it only displays the Terraform state.

Official Terraform Documentation Reference:

terraform graph - HashiCorp Documentation

This is where Terraform saves resource state when using a remote backend or Terraform Cloud integration, as it allows you to store and manage your state file in a remote location, such as a cloud storage service or Terraform Cloud’s servers. This enables collaboration, security, and scalability for your Terraform infrastructure.

In Terraform, theresource nameis the second argument in the resource block.

The structure of a resource block is:

resource "provider_resource_type" "resource_name" {

# Configuration settings

}

Here, the provider type isgoogle_compute_instance, and theresource nameis "main".

The name "test" is simply the value assigned to the name attribute, which is unrelated to the Terraform resource name.

"google" and "compute_instance" are part of the provider and resource type, not the resource name.

Official Terraform Documentation Reference:

Terraform Resource Documentation

You should run terraform fmt to rewrite all Terraform configurations within the current working directory to conform to Terraform-style conventions. This command applies a subset of the Terraform language style conventions, along with other minor adjustments for readability. It is recommended to use this command to ensure consistency of style across different Terraform codebases. The command is optional, opinionated, and has no customization options, but it can help you and your team understand the code more quickly and easily. References = : Command: fmt : Using Terraform fmt Command to Format Your Terraform Code

Changes invoked by terraform apply take effect once the resource provider has fulfilled the request, not after Terraform has updated the state file or immediately. The state file is only a reflection of the real resources, not a source of truth.

The terraform plan command does not update the state file. Instead, it reads the current state and the configuration files to determine what changes would be made to bring the real-world infrastructure into the desired state defined in the configuration. The plan operation is a read-only operation and does not modify the state or the infrastructure. It is the terraform apply command that actually applies changes and updates the state file.References = Terraform's official guidelines and documentation clarify the purpose of the terraform plan command, highlighting its role in preparing and showing an execution plan without making any changes to the actual state or infrastructure .

Terraform follows adeclarativeapproach, meaning it ensures the infrastructure matches the configuration.

If you run terraform apply againwithout any changes, Terraform willdetect that the infrastructure is already up to dateand willdo nothing.

The command will complete successfully with the message"No changes. Your infrastructure matches the configuration."

Official Terraform Documentation Reference:

Terraform Apply - HashiCorp Documentation

This is not a valid Terraform variable type. The other options are valid variable types that can store different kinds of values2.

This is how Terraform manages most dependencies between resources, by using the references between them in the configuration files. For example, if resource A depends on resource B, Terraform will create resource B first and then pass its attributes to resource A.

Referencing Terraform Built-in Functions:

?chomp: removes trailing newlines

?join: combines list into string

?split: splits string into list

?slice:is nota valid Terraform string function (it's used in other languages like Python)

Detailed Explanation:

Rationale for Correct Answer (True):When terraform apply completes successfully, Terraform prints output values. Outputs from both root and child modules are displayed, but child module outputs must be explicitly exposed through the root module outputs to be visible at the CLI.

Analysis of Incorrect Option:

False: Incorrect, because Terraform does display output values, but only if they are exposed from child modules to the root module.

Key Concept:Outputs help you extract important information (e.g., IP addresses, resource IDs) from your configuration.

Terraforminstalls providers during the terraform init phase.

Providers aredownloaded and installedwhen running terraform init.

A (terraform plan)is incorrect because terraform plan only calculates changes but does not install providers.

C (terraform refresh)is incorrect because terraform refresh only updates the state but does not install providers.

Official Terraform Documentation Reference:

Provider Installation - HashiCorp Documentation

This is one disadvantage of using dynamic blocks in Terraform, as they can introduce complexity and reduce readability of the configuration. The other options are either advantages or incorrect statements.

This is what will happen if you run terraform destroy without any flags, as it will attempt to delete all the resources that are associated with your current working directory or workspace. You can use the -target flag to specify a particular resource that you want to destroy.

Terraform validate reports configuration consistency errors, such as declaring a resource identifier more than once. This means that the same resource type and name combination is used for multiple resource blocks, which is not allowed in Terraform. For example, resource "aws_instance" "example" {...} cannot be used more than once in the same configuration. Terraform validate does not report errors related to module versions, state differences, or formatting issues, as these are not relevant for checking the configuration syntax and structure. References = [Validate Configuration], [Resource Syntax]

It lets you version, reuse, and share infrastructure configuration as code files, which can be stored in a source control system and integrated with your CI/CD pipeline.

It reduces risk of operator error by automating repetitive tasks and ensuring consistency across environments. IaC does not necessarily provision resources at a lower cost, secure your credentials, or prevent manual modifications to your resources - these depend on other factors such as your cloud provider, your security practices, and your access policies.

Terraform state is a representation of the infrastructure that Terraform manages. Terraform uses state to track the current status of the resources it creates and to plan future changes. However, Terraform state is not aware of any changes made to the resources outside of Terraform, such as through the Azure Cloud Console, the Azure CLI, or the Azure API. Therefore, changing resources via the Azure Cloud Console does not update the current state file, and it may cause inconsistencies or conflicts with Terraform’s desired configuration. To avoid this, it is recommended to manage resources exclusively through Terraform or to use the terraform import command to bring existing resources under Terraform’s control.

When you change a Terraform-managed resource via the Azure Cloud Console, Terraform does not immediately update the state file to reflect the change. However, the next time you run terraform plan or terraform apply, Terraform will compare the state file with the actual state of the resources in Azure and detect any drifts or differences. Terraform will then update the state file to match the current state of the resources and show you the proposed changes in the execution plan. Depending on the configuration and the change, Terraform may try to undo the change, modify the resource further, or recreate the resource entirely. To avoid unexpected or destructive changes, it is recommended to review the execution plan carefully before applying it or to use the terraform refresh command to update the state file without applying any changes.

References = Purpose of Terraform State, Terraform State, Managing State, Importing Infrastructure, [Command: plan], [Command: apply], [Command: refresh]

terraform validatechecks for syntax errors and internal consistencyin the configuration files.

However, itdoes notcheck if resource configurations are valid with the provider.

Official Terraform Documentation Reference:

terraform validate - HashiCorp Documentation

Child modulesdo not automatically inheritvariables from the parent module.

To pass values from theparent moduleto thechild module, you mustexplicitly define input variablesin the child module and pass them in the parent module.

Example:

hcl

CopyEdit

module "example" {

source = "./child_module"

var1 = "value"

}

Official Terraform Documentation Reference:

Passing Variables to Modules

The terraform import command is used to import existing infrastructure into Terraform’s state. This allows Terraform to manage and destroy the imported infrastructure as part of the configuration. The terraform import command does not modify the configuration, so the imported resources must be manually added to the configuration after the import. References = [Importing Infrastructure]

Detailed Explanation:

Rationale for Correct Answer (A):Providers only interact with one specific platform or API. Terraform itself can work with multiple providers in one configuration, but a single provider is not responsible for provisioning across multiple cloud providers.

Analysis of Incorrect Options:

B. Managing actions to take based on resource differences: This is a provider responsibility (through the resource schema).

C. Managing resources and data sources based on an API: Correct — providers define resources/data sources and map them to API calls.

D. Understanding API interactions with a hosted service: Correct — providers encapsulate API logic to allow Terraform to manage resources.

Key Concept:Providers are API adapters. They handle CRUD operations for resources in their own ecosystem but do not span across multiple cloud platforms.

 This is the command that can add existing resources into Terraform state, by matching them with the corresponding configuration blocks in your files. 

The public Terraform Module Registry automatically exposes all the information about published modules, including required input variables, optional input variables and default values, and outputs. This helps users to understand how to use and configure the modules.

According to theofficial Terraform documentationhere:

????Terraform Docs – Declaring an Output Value

In Terraform 0.12 and later, you can directly use expressions in outputs without interpolation syntax:

output "instance_ip_addr" {

value = aws_instance.server.private_ip

}

This aligns perfectly withOption A:

output "instance_ip_addr" {

value = aws_instance.main.private_ip

}

Why not the others?

?Option B: Incorrect syntax. "${main.private_ip}" is referencing main as if it were a global variable or resource, but it isn’t defined. Plus, the output name is oddly written as aws_instance.instance_ip_addr, which is not a valid identifier format.

?Option C: Although valid in older versions (<= 0.11), interpolation with "${}" isdeprecatedin Terraform 0.12+. The docs clearly advise using direct expressions instead.

?Option D: Terraform hasno return statement; this is syntactically invalid in Terraform’s HCL.

The -replace flag is used with the terraform apply command when there is a need to explicitly force Terraform to destroy and then recreate a specific resource during the next apply. This can be necessary in situations where a simple update is insufficient or when a resource must be re-provisioned to pick up certain changes.

terraform validateonlychecks the configuration’s syntax and internal consistency—itdoes notinteract with provider APIs or check if the infrastructure settings are correct.

It ensures that the Terraform code is syntactically correct and follows proper HCL structure.

However, it doesnotverify if resources are valid according to the provider API or if the credentials are correct.

To verify actual infrastructure settings, use terraform plan, which interacts with the provider APIs.

Official Terraform Documentation Reference:

terraform validate - HashiCorp Documentation

To output returned values from a child module in the Terraform CLI output, you need to declare the output in both the child module and the root module. The child module output will return the value to the root module, and the root module output will display the value in the CLI. References = [Terraform Outputs]

This is a secure way to inject sensitive variables into your Terraform run, as they will not be stored in any file or source code repository. You can also use environment variables or variable files with encryption to pass sensitive variables to Terraform.

Destroy Command Options: Theterraform destroycommand is the correct method to destroy resources, and it requires either manual approval or the -auto-approve flag.

Unsupported Triggering Method: The--destroy flagis not a recognized option for plan or apply commands, making B the correct answer as it isnota valid way to initiate resource destruction.

For more on destroying resources, refer to theterraform destroy command documentationin the Terraform CLI reference.

From the Terraform Output Docs – Sensitive:

"Marking an output as sensitive prevents Terraform from showing its value in the CLI output,but it will still bestored in the state file."

Thus, it protects display, not storage.

Terraform’s Indentation Standards: Terraform’s style convention usestwo spaces per nesting levelfor readability, helping to maintain uniform code across teams.

Configuration Files: Consistent indentation is crucial for Terraform’s HCL syntax, as it improves readability and avoids parsing issues.

More details are available in theTerraform configuration style guide.

This will enable additional logging messages to find out from which paths Terraform is loading providers referenced in your Terraform configuration files, as it will set the log level to TRACE, which is the most verbose and detailed level.

You do not need to use different Terraform commands depending on the cloud provider you use. Terraform commands are consistent across different providers, as they operate on the Terraform configuration files and state files, not on the provider APIs directly.

From Terraform CLI Overview:

"Terraform provides a consistent CLI workflow regardless of which cloud or service you’re managing."

Thesame Terraform commandswork across all providers via plugins.

Terraform workspaces allow you to create multiple states but still be associated with your current code. Workspaces are like “environments” (e.g. staging, production) for the same configuration. You can use workspaces to spin up a copy of your production deployment for testing purposes without having to configure a new state backend. Terraform data sources, local values, and modules are not features that allow you to create multiple states. References = Workspaces and How to Use Terraform Workspaces

These are some of the ways that a ticket-based system can slow down infrastructure provisioning and limit the ability to scale, as they introduce delays, bottlenecks, and manual interventions in the process of creating and modifying infrastructure.

It is not a best practice to store secret data in the same version control repository as your Terraform configuration, as it could expose your sensitive information to unauthorized parties or compromise your security. You should use environment variables, vaults, or other mechanisms to store and provide secret data to Terraform.

Detailed Explanation:

Rationale for Correct Answer (D):The Terraform Registry provides documentation for published modules, including:

Required inputs (variables you must supply).

Optional inputs with defaults (so you know what you can override).

Outputs (what values the module returns for use elsewhere).

Therefore, the correct answer is all of the above.

Analysis of Incorrect Options:

A. Required inputs only: Incomplete.

B. Outputs only: Incomplete.

C. Optional inputs only: Incomplete.

D. All of the above: Correct because the Registry provides all relevant documentation.

Key Concept:Terraform Registry modules include inputs, outputs, and usage details, enabling reusability and modular design.

You do not need to use different Terraform commands depending on the cloud provider you use. Terraform commands are consistent across different providers, as they operate on the Terraform configuration files and state files, not on the provider APIs directly.

Detailed Explanation:

Rationale for Correct Answer (B):terraform import allows Terraform to associate existing resources (created outside of Terraform or by another tool) with a Terraform configuration by writing them into the state file. After import, Terraform can manage those resources.

Analysis of Incorrect Options:

A. From one state file to another: Incorrect, import does not transfer between state files.

C. Importing a module: Incorrect, modules are defined in configuration, not imported.

D. Import all infrastructure: Incorrect, import is per-resource, not bulk.

E. Provider configuration transfer: Incorrect, provider configs are in .tf files, not imported with this command.

Key Concept:The terraform import command bridges existing resources with Terraform state management.

Module Versioning: To specify a version in a module block for modules in theTerraform Registry, you add the version attribute, e.g., version = "1.0.0".

Terraform Registry Support: The public registrysupports versioningby enabling semantic constraints, allowing users to define specific versions compatible with their infrastructure requirements.

Refer to themodule versioning documentationin Terraform’s official registry guide.

This is what will happen if you run terraform apply in the working directory again, after removing the resource definition from your Terraform configuration file. Terraform will detect that there is a resource in the state file that is not present in the configuration file, and will assume that you want to delete it.

Variables declared within a module are only accessible within that module, unless they are explicitly exposed as output values1.

Terraform is built on a plugin-based architecture, enabling developers to extend Terraform by writing new plugins or compiling modified versions of existing plugins1. Terraform plugins are executable binaries written in Go that expose an implementation for a specific service, such as a cloud resource, SaaS platform, or API2. If there is no existing provider for your API, you can create one using the Terraform Plugin SDK3 or the Terraform Plugin Framework4. References =

•1: Plugin Development - How Terraform Works With Plugins | Terraform | HashiCorp Developer

•2: Lab: Terraform Plug-in Based Architecture - GitHub

•3: Terraform Plugin SDK - Terraform by HashiCorp

•4: HashiCorp Terraform Plugin Framework Now Generally Available

Sensitive values such as API tokens should be stored in a secure way, either in Terraform Cloud variables marked as sensitive or in HashiCorp Vault. Storing secrets in version control systems or plaintext files is not recommended.

The terraform fmt command is used to format Terraform configuration files to a canonical format and style. This ensures that all team members are using a consistent style, making the code easier to read and maintain. It automatically applies Terraform's standard formatting conventions to your configuration files, helping maintain consistency across the team's codebase.

The execution plan for terraform apply will not be the same as the one you ran locally with terraform plan, if your teammate manually modified the infrastructure component you are working on. This is because Terraform will refresh the state file before applying any changes, and will detect any differences between the state and the real resources.

Infrastructure as Code (IaC) refers to managing infrastructureprogrammatically, enabling automation and repeatability.

Ais incorrect becauseIaC is not just about software delivery pipelines; it specifically deals with infrastructure.

Bis incorrect because"Write once, run anywhere" applies more to software development than IaC.

Dis incorrect becauseIaC does not enforce vendor-agnostic APIs; it depends on the tool and provider.

Official Terraform Documentation Reference:

What is Infrastructure as Code?

This is where the Terraform local backend stores its state, by default, unless you specify a different file name or location in your configuration. The local backend is the simplest backend type that stores the state file on your local disk.

A module cannot always refer to all variables declared in its parent module, as it needs to explicitly declare input variables and assign values to them from the parent module’s arguments. A module cannot access the parent module’s variables directly, unless they are passed as input arguments.

 The concept of infrastructure as code (IaC) is to define and manage infrastructure using code, rather than manual processes or GUI tools. A script that contains a series of public cloud CLI commands is an example of IaC, because it uses code to provision resources into a public cloud. The other options are not examples of IaC, because they involve manual or interactive actions, such as running curl commands, sending REST requests, or entering commands into a console. References = [Introduction to Infrastructure as Code with Terraform] and [Infrastructure as Code]

Environment variables and connection configurations outside of Terraform are secure options for storing secrets for connecting to a Terraform remote backend. Environment variables can be used to set values for input variables that contain secrets, such as backend access keys or tokens. Terraform will read environment variables that start with TF_VAR_ and match the name of an input variable. For example, if you have an input variable called backend_token, you can set its value with the environment variable TF_VAR_backend_token1. Connection configurations outside of Terraform are files or scripts that provide credentials or other information for Terraform to connect to a remote backend. For example, you can use a credentials file for the S3 backend2, or a shell script for the HTTP backend3. These files or scripts are not part of the Terraform configuration and can be stored securely in a separate location. The other options are not secure for storing secrets. A variable file is a file that contains values for input variables. Variable files are usually stored in the same directory as the Terraform configuration or in a version control system. This exposes the secrets to anyone who can access the files or the repository. You should not store secrets in variable files1. Inside the backend block within the Terraform configuration is where you specify the type and settings of the remote backend. The backend block is part of the Terraform configuration and is usually stored in a version control system. This exposes the secrets to anyone who can access the configuration or the repository. You should not store secrets in the backend block4. References = [Terraform Input Variables]1, [Backend Type: s3]2, [Backend Type: http]3, [Backend Configuration]4

When the state file is locked, operations that modify or depend on the state (liketerraform apply,terraform destroy, andterraform state list) are blocked.terraform fmtonly formats the configuration files and does not interact with the state, so it is allowed.

Not all standard backend types support state locking and remote operations like plan, apply, and destroy. For example, the local backend does not support remote operations and state locking. State locking is a feature that ensures that no two users can make changes to the state file at the same time, which is crucial for preventing race conditions. Remote operations allow running Terraform commands on a remote server, which is supported by some backends like remote or consul, but not all.

The Terraform Cloud private registry provides the ability to restrict modules to members of Terraform Cloud or Enterprise organizations. This allows you to share modules within your organization without exposing them to the public. The private registry also supports importing modules from your private VCS repositories. The public Terraform Module Registry, on the other hand, publishes modules from public Git repositories and makes them available to any user of Terraform. References = : Private Registry - Terraform Cloud : Terraform Registry - Provider Documentation

In the given Terraform configuration snippet:

resource "aws_vpc" "main" {

name = "test"

}

The provider for the resource aws_vpc is aws. The provider is specified by the prefix of the resource type. In this case, aws_vpc indicates that the resource type vpc is provided by the aws provider.

This is the scenario that poses a challenge for this team, if they adopt AWS CloudFormation as their standardized method for provisioning public cloud resources, as CloudFormation only supports AWS services and resources, and cannot be used to provision infrastructure on other cloud platforms such as Azure.

Theversion argumentin a module ensures Terraform uses aspecific versionof a module, preventing unintended updates.

A (source)– Specifies the module source butdoes not control versioning.

B (count)– Controls how many instances of a resource/module exist,not updates.

D (lifecycle)– Controls how resources behavebut does not control module versioning.

Official Terraform Documentation Reference:

Module Version Constraints

Sentinel is a policy-as-code framework that integrates with Terraform Cloud to enforce security, compliance, and governance rules. You can enforce rules such as approved AMIs and ensure security best practices. Policies are written in the Sentinel language, not HCL.

This is how Terraform chooses which version of the provider to use, when you add a new resource to an existing Terraform configuration, but do not update the version constraint in the configuration. The lock file records the exact version of each provider that was installed in your working directory, and ensures that Terraform will always use the same provider versions until you run terraform init -upgrade to update them.

This is the method for sharing Terraform configurations that fulfills the following criteria:

Keeps the configurations confidential within your organization

Supports Terraform’s semantic version constraints

Provides a browsable directory

The Terraform Cloud private registry is a feature of Terraform Cloud that allows you to host and manage your own modules within your organization, and use them in your Terraform configurations with versioning and access control.

 This is a quick way to inspect the state file and find the information you need without modifying anything5. The other options are either incorrect or inefficient.

The terraform fmt command is used to rewrite Terraform configuration files to a canonical format and style. This command applies a subset of the Terraform language style conventions, along with other minor adjustments for readability. Running this command on your configuration files before committing them to source control can help ensure consistency of style between different Terraform codebases, and can also make diffs easier to read. You can also use the -check and -diff options to check if the files are formatted and display the formatting changes respectively2. Running the terraform fmt command during the code linting phase of your CI/CD process can help automate this process and enforce the formatting standards for your team. References = [Command: fmt]2

These are two ways to produce a list of the IDs from a list of objects that have an attribute id, using either a for expression or a splat expression syntax.

The required_providers block is used to specify the provider versions that the configuration can work with. The version argument accepts a version constraint string, which must be enclosed in double quotes. The version constraint string can use operators such as >=, ~>, =, etc. to specify the minimum, maximum, or exact version of the provider. For example, version = ">= 3.1" means that theconfiguration can work with any provider version that is 3.1 or higher. References = [Provider Requirements] and [Version Constraints]

This is not a valid Terraform collection type, as Terraform only supports three collection types: list, map, and set. A tree is a data structure that consists of nodes with parent-child relationships, which is not supported by Terraform.

The module source path that does not specify a remote module is source = "module/consul". This specifies a local module, which is a module that is stored in a subdirectory of the current working directory. The other options are all examples of remote modules, which are modules that are stored outside of the current working directory and can be accessed by various protocols, such as Git, HTTP, or the Terraform Registry. Remote modules are useful for sharing and reusing code across different configurations and environments. References = [Module Sources], [Local Paths], [Terraform Registry], [Generic Git Repository], [GitHub]